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Communication  o 
Conf  Pam  #356 


MESSAGE  OF  THE  PRESIDENT. 


Richmond,  Va.,  Jan.  6,  1865. 
To   the    House  of  Representatives  : 

In  response  to  your  resolution  of  the  24th  ult..  relative  to  unpaid 
requisitions  upon  the  Treasury,  drawn  by  the  Quartermaster  Gen- 
eral and  the  Commissary  General,  I  herewith  transmit  a  communi- 
cation from  the  Secretary  of  the  Treasury,  which  conveys  the  in- 
formation desired. 

JEFFERSON  DAVIS. 


COMMI'NTCATTON  OF  SECRETARY  OF   TREASURY 


iill.ASURY   DeI'ARTMKNT,   t-   S-    A.,  j 

Richmond.  January  5th,  1865.  \ 

To  the  President  : 

Sir:_I  have  the  bouor  to  acknowledjiO  the  recoii)t  of  your  com- 
municatioB  of  the  2d  instant,  transmittinj?  a  copy  of  the  resolution 
of  the  House  of  Representatives  of  the  24th  ult..  as  follows  : 

'*  Resolved,  That  the  President  be  respectfully  requested  to  in- 
form this  Ifouse— First,  as  to  theamouat  of  money  for  which  requi- 
sitions from  the  Quartermaster  General  and  the  Commissary  Gen- 
eral, drawn  upon  the  Treasury,  remain  unpaid.  Second,  as  to  the 
reasons  for  the  non-payment  of  such  requisitiois." 

In   response  thereto,  1   enclose  herein   copies  of  the  following 

papers : 

1.  Letter  from  Hon.  J.  A.  Seddon,  Secretary  or  War,  to  the 
Secretary  of  the  Treasury,  dated  December  30,  1864. 

2.  Letter  of  the  Secretary  of  the  Treasury  in  reply  to  the  fore- 
going,  dated  December  31,1 864. 

3.  Tabular  statement  of  the  appropriations  for  the  War  Depart- 
ment,  and  of  the  amounts  paid  in  pursuance  thereof.  _ 

These  papers  are  respectfully  submitted  as  containing  all  the  in- 
formation called  for  by  the  resolution. 
The  indebtediess  exhibited  by  the  unpaid  requisitions 

ja  '  "^  $181,000,000 


2 

The  indebtedness  in  the  Trans-Mi?si?sippi  Department 
as  reported  l>y  (Ion.  E.  Ivirliy-  ^luitli.  ati'l  (""i-  which 
no  requisitions  liaYC  l)eeD  made,  is  00,000,000 

$241^00^000 

This  greatly  exceeds  tlie  estiraafe  of  arrears  made  in  my  report 
to  C'ongresB  of  November  7th  in  which  it  is  stated  at  $114,000,000. 
For  this,  and  other  reasons  of  equal  gravity  and  importance,  it 
has  become  necessary  that  another  communication  should  be  sent  to 
Congress  from  this  Dopartm'^nt.  upon  the  general  condition  of  the 
finances,  and  I  propose  to  send  in  a  report  without  delay. 

G.  A.  TRENHOLM, 

.Secretary  of  Treasury. 


LETTER  OF  THE  SECRETARY  OF  WAR. 

Confederate  States  of  America,  ) 

War  Depai-tment,  / 

Richmond,  Va.,  Dec.  30,  1864.      ) 

Hon.  G.  A.  Trfnholm,  Secretary  of  the  Treasury : 

Sir  : — I  have  examined  the  statement  of  Gen.  E.-  Kirby  Smith, 
referred  by  you,  in  which  the  indebtedness  of  the  Trans- 
Mississippi  Department  is  approximately  stated  for  the  year  ending 
30th  of  September,  1864,  at  $60,333,099 

He  includes  under  the  head  of  amount  due,  20,277,465 

And  from  estimates.  40,055.634 

To  this  amount  arc  to  be  added  the  debts  contracted  since  that  date. 

A  portion  of  this  sum  has  been  remitted,  but  it  is  supposed  that 
the  debt  is  quite  as  large  now,  or  larger  than  it  was,  on  the  30th  of 
September  last. 

The  requisitions  of  the  Quartermaster  General  unanswered  now 
amount  to  the  sum  of  $128,360,584  87 

Those  of  the  Commissary  General,  34,002,684  65 

The  Ordnance  service  in  arrears,  5,640.388  00 

The  Medical  service         "  3.090,333  00 

The  Engineer  service      "         exclusive  of  Tr-Miss.,    5,000,000  00 
The  Nitre  and  Mining  .service.  5,600,000  00 

The  Department  is  constantly  importuned  for  the  payment  of 
money  due  for  necessary  supplies  which  have  already  been  furnish- 
ed, and  is  constantly  advised  that  supplies  cannot  be  obtained  for 
the  want  of  the  requisite  funds.  Its  whole  service  is  in  a  fair  way 
to  perish  from  inanition. 

I  am  satisfied  that  the  discredit  of  the  government  has  arisen, 
in  a  measure,  from  the  delay  that  has  been  made  in  the  liquidation 


of  these  pressing,  urgent  auJ  incriiorioua  claims.  1  am  aware  of 
the  many  strong  considerations  that  induce  a  restriction  of  issue 
as  far  as  practical)Ie,  l)ut  I  venture  to  suggest,  tliat  the  currency 
itself  probably  suffers  more  discredit  from  the  failure  to  meet  the 
engagements  of  the  government,  tlian  could  result  from  inflation 
by  the  issue  necessary  to  redeem  them. 

You  can  scarcely  realize  to  what  extent  tlio  inability  or  failure 
to  meet  the  obligations  of  tlio  department  has  been  prolific  of  mis- 
chiefs. It  has  been  occasion  and  excuse  for  desertion,  marauding, 
•ale  of  clething  and  equipments,  among  the  soldiers.  It  has  prevented 
the  accumulation  of  supplies:  it  has  affected  the  cfllciency  of  trans- 
portation ;  it  has  produced  carelessness  or  indilTerence  among  con- 
tractors ;  officers  are  resentful,  and  soldiers  reckless,  discontented 
and  suffering. 

Most  serious  apprehension  that  unless  the  indebtedness  of  this 
department  now  existing,  can  be  provided  for  without  delay,  that 
its  operations  cannot,  with  daily  increasing  obstructions,  embarrass- 
ments and  antagonisms  among  the  ])Cople  themselves,  be  carried  on. 
I  am  constrained  to  invoke  your  earnest  attention  to  the  subject 
and  to  urge  immediate  application  of  all  practicable  measures  of  re- 
lief. 

Very  truly  yours, 
(Signed)  JAMES  A.  SEDDON, 

t'ceretary  of  War. 


LETTER  OF  SECRETARY  OF  TREASURY. 

Treasury  Department,         ) 
Richmond  Doc.  31,  1864  j 

Hon.  Jamm  A.  Seddox,  Secretary  of  War  : 

Sir  : — I  have  the  honor  to  acknowledge  the  receipt  of  your  let-' 
ter  of  30th  instant,  and  to  express  my  sincere  regret  at  the  embar- 
rassment arising  from  the  inadequate  supply  of  means  at  the  com- 
mand of  the  War  Department.  I'hat  there  should  be  so  large  an 
amount  of  requisitions  unsatisfied  does  not  proceed,  as  supposed, 
from  the  effort  to  restrain  the  issue  of  treasury  notes.  However 
desirable  it  was  to  repress  the  enlaTgeraent  of  the  currency,  it  was 
clearly  impossible  to  withhold  any  part  of  the  proportion  of  notes 
applicable  to  the  payment  of  expenditures.  After  making  the  ne- 
cesssary  reservation  for  the  exchange  of  the  old  issue  as  provided 
bylaw,  the  largest  amount  tliat  remained  and  could  be  applied  to 
the  payment  of  expenditures  was  estimated  at  $200,000,000. 

Of  this  amount  $100,000,000  had  already  been  paid  out  on  re- 
quisitions up  to  Ist  duly  18G4,  leaving  only  '$100,000,000  available 
to  meet  the   appropriations  for  the  six  m')nl,li>.   from  1st  July  to 


31st  December,   1864.     The  appropriations  for  the  War  Depart- 
ment for  tliat  period,  are  $358,245,000 

The  requisitions  satisfied  in  the  same  period  are,  320,721,116 

The   amount  sent  to   the   Trans-Mississippi  Depart- 
ment in  notes,  bonds  and  certificates,  is  47,000,000 

367,721,116 

The  amount  paid  in  treasury  notes  from  1st  April  to  Slst  Decem- 
ber, is  $397,260,209,  from  which  it  appears  that  not  only  has  the 
$200,000,000  authorized  by  the  provisions  of  the  Act  of  l7th  of 
February,  been  applied  in  the  satisfaction  of  requisitions,  but  also 
a  further  sum  of  $197,260,209,  derived  froin  the  sale  of  bonds, 
temporary  loans  and  otlier  source;^. 

It  will  be  perceived,  too,  that  a  suiu  equal  to  tlie  appropriations 
for  the  last  six  months,  was  paid  in  that  period,  and  that  the  em- 
barrassment really  arises  from  the  preexisting  indebtedness.  The 
data  for  dctcrmininjj:  the  arrears  oC  debt  in  .July  last,  were  quite 
imperfect.  It  was  estimated,  by  my  predecessor,  at  $75,000,000, 
on  the  1st  of  April,  (Report  of  May  2,  pajje  4.)  In  my  report  of 
November  7,  1  estimated  it  lo  have  been  $114,000,000,  on  the  1st 
of  July  last,  and  recommended  that  provision  should  lie  made  for 
this  amount.  On  the  1.3th  of  December,  1  addressed  a  letter  to 
Hon.  F.  S.  Lyon,  Chairman  of  the  Committee  of  Ways  and  Means, 
pressing  on  his  attention  the  necessity  of  prompt  action  in  making 
provision  to  meet  the  estimates  for  the  approaching  six  months  and 
the  arrear  of  debt. 

Among  the  resources  of  tlie  future,  I  rely  u]>on  obtaining  about 
$40,000,000  from  the  tax  on  sales  for  the  last  quarter  of  the  year, 
and' the' income  tax,  wliich  arc  payable  on  the  1st  of  January,  1865, 
and  consequently  receivable  in  new  issues.  I  relied  upon  this 
resource  to  defray  the  arrear  of  pay  diae  the  army. 

The  accompanying  table  exhibits  the    appropriations  for  the  sev- 
•  oral  Bureaus  of  the  War  Department,   and   the   amount  of  requisi- 
tions satisfied  for  them  respectively. 

Yours,  most  truly, 
(Signed)  G.  A.  TRENilOLM, 

Secretary  of  the  Treasury. 


STATEMENT  OF  WAR  APPROPRIATIONS,  &c. 


Bureau. 


QaKrkermaster's  Department, . 

Subsistenee 

Ordnance  SerTlce, 

Nitre  and  Mining  Serrlce, 

Engineer  Service, 

Medical  Service 

Pay  of  the  Army, ..»..» 

Bureau  of  Conscription, ... , 

Contingent  Expenses  A.  A  I    Gen's  Veft. 
Incidental  and  Contingent  Exp.  of  Army. 


AmoBot  appro 
priated  from 
1st  July  to  81it 
_Dec.,  1864^ 
$ltt,T50>49To 
ino,ro<i,ooo  00 

25,000,000  00 

6,600  ,Hoo  on 

10,000.000  00 
16,320,OliO  00 
74,149,051  0«) 


25,000  00 

100,1100  on 

♦858,a-l5,000  00 


Atfuount  of  { 
appropriations 
transferred  to 
Tr-Mlss.  Oept 

$23  01S,567  00 
12,ft00,000  00 
4, .100,000  no 
2,150,000  00 
2,1100,000  00 
570,000  00 
19,000,»00  00 


$«2,788,5«T  00 


Amount 

remaining 

after  allowing 

transfers . 

1108,781,48200 
87,500,000  00 
20,500,000  00 
4,fi.50,000  00 
8,000,000  00 
15,750,000  00 
65,249,951  00 


Total  amount 

drawn  froia 

l8tJaly,'64,t« 

lit  Jan.,^«J6*. 

♦iT9,788,74<r4j; 

90,598,880  40 

27,915,777  9l» 

19,190,492  10 

9,0Se,884  m 

10,000,177  11 

49,876,880  51 

1,787,847  10 

4,000  OO 

181,08«  17 


ti95,8Sl,i$8  00  t8SU.721 ,110  41 


REMITTANCES  TO  TRANS-MISSISSIPPI  DEPARTMENT. 


Treasury  notes  from  June  8d  to  NoTember28d,  1864, $J0,000,0O0  00 

Six  per  cent,  non-taxable  bond*  from  July  3l8t  te  November  9,  1864, 6,000,000  08 

your  percent.  Joan  from  August  6th  to  November  9,  194-4, »,00(i,(lit0  00 

Certlflcates  of  Indebtedness  fi-om  August  6tli  to  November  9, 1864, 12,000,000  00 

147,000,000  00 


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